To: All PECG Members and Fee Payers

Dear Colleague,

An Alameda Superior Court Judge has ruled that the Governor's furlough program is illegal and, as applied to some agencies and departments, is an abuse of discretion, arbitrary, capricious, and unlawful. The ruling orders the Governor to pay all affected employees their full salary without any reductions pursuant to the illegal furloughs and to restore any salary wrongfully withheld. The decision applies to more than 97% of PECG-represented employees, regardless of whether their particular position is funded by special funds or general funds. The lawsuit was originally filed by several unions challenging furloughs of special fund employees, but the court's ruling is much broader than that in its application.

Unfortunately, it probably does not mean that furloughs will stop immediately or that employees will be receiving checks for back pay. Superior Court rulings such as this are subject to appeal to the Court of Appeal, which the Governor plans to do. The Governor will also seek a stay of the ruling, meaning it would not take effect until the Court of Appeal hears and rules on the case. Typically, such decisions involving payment of money are stayed on appeal, but that will be determined by the Court of Appeal in fairly short order.

PECG filed a parallel lawsuit in the Alameda Court. PECG's primary lawsuit challenging the furloughs for all PECG represented employees is currently in the Court of Appeal in Sacramento. Legal briefs and additional written arguments required by the court have nearly been completed but oral argument and a final ruling by that court are probably several months away. In light of the diverse rulings around the state from different courts, the issue of the Governor's authority to issue furloughs will probably be ultimately determined by the State Supreme Court.

In the meantime, it is encouraging that at least some courts are agreeing with the view of PECG and other state employee organizations that the Governor's furlough program was illegal, should be rescinded, and employees should receive all salary withheld.

As always, the PECG leadership appreciates the support of the members as we continue to oppose the current administration's illegal actions to reduce employee compensation.

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